CRH seeks deals after rights issue

CRH, the London-listed Irish building materials company, will aim to acquire
struggling rivals after launching a €1.2bn (£1.1bn) rights issue.

By Graham Ruddick

4:53PM GMT 03 Mar 2009

The company, one of the world's biggest suppliers to builders, will offer two new shares for seven existing ones at €8.40 each, a 39.3pc discount to the closing share price on Monday.

"The board believes that CRH is well positioned to benefit from the attractive acquisition opportunities which are beginning to emerge within its industry," said CRH, which is led by Myles Lee, in a stock exchange announcement yesterday. It added that now is an appropriate to strengthen its financial flexibility.

CRH, which also reported a 14pc fall in annual pre-tax profits to €1.6bn, is looking to take advantage of the troubles which the slump in global construction markets, including housing, has had on other companies in the sector.

CRH announced a similar rights issue in 2001, and subsequently went on a spending spree which resulted in pre-tax profits more than doubling.